Moneywise-Save Today For A Better Tomorrow

Moneywise-Save Today For A Better Tomorrow

Posted by Adm1n in Moneywise on 03 28th, 2009 | no responses

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Moneywise

One can strike not only two mangoes with a stone but 3 or 4 at a time. Under todays circumstances there are people who take unit linked insurance plans from Life Insurance Companies be it LIC, ICICI, HDFC etc., for the purposes of Income Tax benefits and also savings habits, without reading the fine prints and charges inbuilt in the same. On the other hand there are people who take Insurance policies for the sake of risk cover alone which are popularly called as Term Insurance Policies. (In these products the premiums paid are not paid back or there are no benefits if the life assured survives to the term of the policy.)

For all categories of people mentioned in the above para whether you are buying a term plan for the sake of insurance cover, or for the sake of IT purposes or for the sake of investing/savings with an objective of returns in mind, here is a plan from the stable of UTI MUTUAL FUND which gives an breakthrough and a good challenging terms to other competitors in the market. Following are two illustrations which are self explanatory for any one explaining themselves. Illustration one defines for a 25 year old person the investments, returns, charges, etc., from an insurance company. Where else illustration two is of UTI MUTUAL FUND which explains all the points as same as illustration one.

Also note in the scheme from UTI MF a person can invest only for one year and thereafter he need not invest. With regards to the life cover it will be available continuosly throughout the period for a maximum 15 years time by deducting only the charges towards the life premium just by redeeming app.units. Now, after reading both the illustrations I think one should be clear where they should be. The ideas presented here are my own. Should you require clarifications you may feel free to call or mail

Illustration 1 :
Illustration of Insurance company ULIP ( an Investment cum Insurance Plan with Tax rebate)
Name	Investor	Financial Advisor
Age	25	Policy	10 years
Target Amount	Rs. 1,00,000/-	Yearly Premium	10000 —-Yearly
		Risk premium	422

Yearly Premium Amount	Initial Expenses	Risk Premiumrr	Critical Cover Charges	Other Expenses	Total Deductions as Charges	Net Amount Available for Investment Every Year	Returns @	Returns @	Returns @	Life Cover at the end of each year
	27%	422	764	1%	Rs	Rs	6%	8%	10%	100000
10000	2700	422	764	100	3886	6114	6114	6114	6114	100000
10000	2700	422	764	100	3886	6114	12595	12717	12839	100000
10000	100	422	764	100	1286	8714	22065	22448	22837	100000
10000	100	422	764	100	1286	8714	32102	32958	33835	100000
10000	100	422	764	100	1286	8714	42743	44309	45933	100000
10000	100	422	764	100	1286	8714	54021	56568	59240	100000
10000	100	422	764	100	1286	8714	65976	69807	73878	100000
10000	100	422	764	100	1286	8714	78649	84106	89980	100000
10000	100	422	764	100	1286	8714	92082	99548	107692	100000
10000	100	422	764	100	1286	8714	106321	116226	127175	100000
100000	6200	4220	7640	1000	18060	81940
Total premiums Total Life cover & other expenses					18.06%	81.94%

Expenses			Investment Component
Tentative Value at the end of 10 Yrs					Rs		112700	123200	139892

Illustration 2 :

Illustration of New UTI-ULIP for 40 year old investor under `10 year plan’
Name		Investor	Financial Advisor
Age	40		Policy	10 years
Target Amount	Rts1,00,000/-		Yearly Premium	10000 —-Yearly
Accident Cov. Rs. 50,000

Yearly Premium Amount	Entry Load	Risk Premium to LIC		Other Expenses	Total Deductions as Charges	Net Amount Available for Investment Every Year	Returns @	Returns @	Returns @	Life Cover at the end of each year Term Plan
	2.25%			0%	Rs.	Rs.	6%	8%	10%	100000
10000	225	225		0	450	9550	9550	9550	9550	100000
10000	225	245		0	470	9530	19653	19844	20035	100000
10000	225	260		0	485	9515	30347	30947	31554	100000
10000	225	260		0	505	9495	41663	42917	44204	100000
10000	225	305		0	530	9470	53633	55821	58094	100000
10000	225	335		0	560	9440	66291	69726	73344	100000
10000	225	365		0	590	9410	79678	84714	90088	100000
10000	225	405		0	630	9370	93829	100862	108467	100000
10000	225	450		0	675	9325	108784	118255	128639	100000
10000	225	500		0	725	9275	124586	136991	150777	100000
100000	2250	3370		0	5620	94380
Total premiums Total Life cover & other expenses					5.62%	94.38%

Expenses			Investment Component
Tentative Value at the end of 10 Yrs							132061	145210	165855
Add for Maturity Bonus5					5%		5000	5000	5000
Total Indicative Maturity Value					Rs.		137061	150210	170855
Remarks: At a Return of 8% and above Investor will receive more than 1.5 times Sum Assured on Maturity. In case on Premature Death(Natural) , Sum Assured Plus Value of Units will be paid. In case on Accidetal Death, Sum Assured Plus Rs. 50000/- Plus Value of Units will be paid.

ELSS – Tax Saver Funds Performance

S.No	FUND NAME	NAV
S.No	FUND NAME	18/3/2009	5 Years
1	Birla Sun Life Tax Relief ‘96 – Dividend	42.60	7.88
2	Franklin India Tax shield – Growth	94.45	13.57
3	HDFC LT Advantage Fund – Growth	57.33	14.46
4	HDFC TaxSaver – Growth	92.99	19.49
5	ICICI Pru Tax Plan – Growth	53.77	17.64
6	LICMF Tax Plan – Growth	16.25	2.71
7	Magnum Tax gain – Growth	29.98	27.40
8	Principal Personal Tax Saver	45.58	10.82
9	Reliance Tax Saver – Growth	9.39	N.A.
10	Sundaram BNP Paribas TaxSaver – Growth	22.08	22.90
11	Tata Tax Saving Fund	26.55	10.17
12	UTI Equity Tax Savings Plan – Growth	20.85	9.35

*Equity *Commodities *Mutual Funds *Life & General Insurance *IPO’s

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Investment and Insurance Ideas :
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mail: sathishcapricorn@gmail.com